Stein Mart Q1 Profit Declines, Adj. Earnings Meet Estimates - Update

(RTTNews) - Apparel retailer Stein Mart, Inc. (SMRT) Thursday reported a lower first-quarter profit, reflecting higher advertising and store selling expenses, despite a rise in sales. Comparable store sales increased 2.6 percent. Adjusted earnings matched analysts' expectations, while revenues came above view.

For the first quarter, the company's net income slightly decreased to $14.08 million or $0.31 per share from $14.69 million or $0.33 per share last year.

Adjusted earnings per share were $0.32, while the company posted $0.33 per share in 2013. On average, five analysts polled by Thomson Reuters expected the company to report profit per share of $0.32 for the quarter. Analysts' estimates typically exclude special items.

Jay Stein, chief executive officer of the company said, "Our planned growth investments in new stores and ecommerce, as well as the timing of our annual advertising spend, caused our earnings to be below last year."

Net sales increased to $328.85 million from $321.36 million a year ago. Analysts expected revenue of $328.06 million for the quarter.

Selling, general and administrative expenses advanced to $81.23 million from $73.56 million a year earlier.

According to the company, higher advertising expense in the recent quarter was mainly due to addition of television to support its more extensive April dress event and increases to drive first quarter sales. Store selling is higher due to planned payroll increases and new and relocated stores, the firm said.

SMRT is currently trading at $13.14, up 0.92 percent.